Facing Resistance from Employer on Paying in Lieu of Notice: What Are My Options?

I've submitted my resignation with a notice period of 3 months. I am willing to pay the equivalent amount in lieu of serving the notice period, but my employer is not agreeing to this. In my offer letter, it states, "Consequent to confirmation, the company may terminate your services by serving 3 (three) months' prior notice or on payment of an amount equivalent to 3 (three) months' gross salary/remuneration in lieu of the notice period, without assigning any reason thereof. In case you decide to leave the company after confirmation, you must provide a 3 (three) months' prior notice or pay an amount equivalent to 3 (three) months' gross salary/remuneration in lieu of the notice period, without providing any reason."

What should be my course of action?

What should be my course of action if I am prepared to make the payment in lieu of notice, but the company is not in agreement?

When the employer rejects the buyout offer of a resigning employee and insists on serving the notice period, it's a tricky situation for the exiting employee. If he simply walks out on his own by remitting the amount of notice salary, the employer would treat this as unauthorized absence and initiate disciplinary action, which could result in the employee's dismissal from service. Until such time, the exited employee would be deemed to be in the service of the establishment.

The prospective employer may not allow the employee to join without formal relieving orders from the previous employer, as it could result in dual employment for statutory purposes. Even if the prospective employer does not mind the relieving orders from the previous employer, the problem of dual employment would still exist if the previous employer treats the case as abscondence. This could be an insurmountable impediment in his future employment whenever the employee switches jobs.

If the employee's resignation is for any reason other than re-employment elsewhere once for all, he may not need to bother about a formal relieving order as he had complied with his part of the exit clause of the contract of employment, against which the estranged employer has no legal remedy.

Therefore, the poster should consider all these factors and come to a rational conclusion. It's better for him to convince his present employer about his dire necessity of an immediate job change and make his exit formal and peaceful.